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Emeren (SOL) Q4 Earnings Miss Estimates, Revenues Beat
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Emeren Group Ltd’s (SOL - Free Report) share price surged 22.3% to reach $2.36 on Apr 2, following the company’s latest quarterly release.
The company reported a loss per American Depositary Share (ADS) of 15 cents for the fourth quarter of 2023, which came in wider than the Zacks Consensus Estimate of a loss of 9 cents. The figure also indicates a deterioration from the year-ago quarter’s reported loss of 3 cents per ADS.
For 2023, the company reported a loss of 16 cents per ADS, indicating a deterioration from a loss of 7 cents in the prior-year period.
Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise
Emeren’s fourth-quarter net revenues of $44 million improved a solid 71.2% from $25.7 million reported in the year-ago period. The reported figure also surpassed the Zacks Consensus Estimate of $39 million by 12.2%.
The company generated revenues worth $104.7 million in 2023, up 70.8% from the year-ago reported figure.
Projects
As of Dec 31, 2023, SOL had 245 megawatts (MW) of projects in operation. Of these, the company operates 60 MW in Europe, 24 MW in the United States and 161 MW in China.
During the fourth quarter, Emeren continued to increase its advanced and early-stage solar development project pipeline to 8,995 MW. As of Dec 31, 2023, the company had a combined storage pipeline of 6.66 MWh in the United States, Europe and China at different stages of development.
Operational Highlights
Its operating expenses amounted to $9.5 million in the reported quarter, up 31.9% year over year. The year-over-year increase resulted primarily from write-offs of project cancellations and bad debt reserves.
The gross profit in the quarter came in at $3.3 million compared with $6 million in the year-ago period.
The company incurred an operating loss of $6.1 million compared with a reported operating loss of $1.2 million in the prior-year quarter.
Financial Condition
As of Dec 31, 2023, Emeren had cash and cash equivalents of $70.2 million compared with $107.1 million as of Dec 31, 2022.
The company’s long-term debt totaled $23 million as of Dec 31, 2023, up from $22.5 million as of Dec 31, 2022.
The cash outflow from operating activities totaled $27.8 million as of Dec 31, 2023, compared with $38 million as of Dec 31, 2022.
Guidance
For the first half of 2024, Emeren projects revenues in the range of $50-$55 million. It also expects a gross margin of 30% for the same period.
The consensus estimate for the company’s revenues in the first half of 2024 is pegged at $66.7 million, higher than the company’s guided range.
For 2024, SOL now expects revenues in the range of $150-$160 million. The gross margin for 2024 is also expected to be 30%.
Canadian Solar Inc. (CSIQ - Free Report) reported a fourth-quarter 2023 loss of 2 cents per share, which came in much narrower than the Zacks Consensus Estimate of a loss of 13 cents. The bottom line deteriorated from the year-ago quarter’s reported profit of $1.11.
This solar cell manufacturer’s total fourth-quarter 2023 revenues of $1.72 billion beat the Zacks Consensus Estimate of $1.65 billion by 3.2%. The top line, however, decreased 13.7% from $1.97 billion reported in the fourth quarter of 2022.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported a fourth-quarter 2023 adjusted loss of 92 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.47. The bottom line deteriorated from the prior-year quarter’s reported profit of $2.86.
The company’s quarterly revenues of $316 million missed the Zacks Consensus Estimate of $320 million by 1.2%. The top line also declined 64.5% from the year-ago quarter’s figure of $890.7 million.
Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2023 adjusted earnings of 54 cents per share, down 64.2% from $1.51 reported in the prior-year quarter. The bottom line was on par with the Zacks Consensus Estimate.
Enphase Energy’s fourth-quarter revenues of $302.6 million missed the Zacks Consensus Estimate of $327 million by 7.5%. The top line also declined 58.2% from the prior-year quarter’s reported figure of $724.7 million.
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Emeren (SOL) Q4 Earnings Miss Estimates, Revenues Beat
Emeren Group Ltd’s (SOL - Free Report) share price surged 22.3% to reach $2.36 on Apr 2, following the company’s latest quarterly release.
The company reported a loss per American Depositary Share (ADS) of 15 cents for the fourth quarter of 2023, which came in wider than the Zacks Consensus Estimate of a loss of 9 cents. The figure also indicates a deterioration from the year-ago quarter’s reported loss of 3 cents per ADS.
For 2023, the company reported a loss of 16 cents per ADS, indicating a deterioration from a loss of 7 cents in the prior-year period.
Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise
Emeren Group Ltd. Sponsored ADR price-consensus-eps-surprise-chart | Emeren Group Ltd. Sponsored ADR Quote
Revenues
Emeren’s fourth-quarter net revenues of $44 million improved a solid 71.2% from $25.7 million reported in the year-ago period. The reported figure also surpassed the Zacks Consensus Estimate of $39 million by 12.2%.
The company generated revenues worth $104.7 million in 2023, up 70.8% from the year-ago reported figure.
Projects
As of Dec 31, 2023, SOL had 245 megawatts (MW) of projects in operation. Of these, the company operates 60 MW in Europe, 24 MW in the United States and 161 MW in China.
During the fourth quarter, Emeren continued to increase its advanced and early-stage solar development project pipeline to 8,995 MW. As of Dec 31, 2023, the company had a combined storage pipeline of 6.66 MWh in the United States, Europe and China at different stages of development.
Operational Highlights
Its operating expenses amounted to $9.5 million in the reported quarter, up 31.9% year over year. The year-over-year increase resulted primarily from write-offs of project cancellations and bad debt reserves.
The gross profit in the quarter came in at $3.3 million compared with $6 million in the year-ago period.
The company incurred an operating loss of $6.1 million compared with a reported operating loss of $1.2 million in the prior-year quarter.
Financial Condition
As of Dec 31, 2023, Emeren had cash and cash equivalents of $70.2 million compared with $107.1 million as of Dec 31, 2022.
The company’s long-term debt totaled $23 million as of Dec 31, 2023, up from $22.5 million as of Dec 31, 2022.
The cash outflow from operating activities totaled $27.8 million as of Dec 31, 2023, compared with $38 million as of Dec 31, 2022.
Guidance
For the first half of 2024, Emeren projects revenues in the range of $50-$55 million. It also expects a gross margin of 30% for the same period.
The consensus estimate for the company’s revenues in the first half of 2024 is pegged at $66.7 million, higher than the company’s guided range.
For 2024, SOL now expects revenues in the range of $150-$160 million. The gross margin for 2024 is also expected to be 30%.
Zacks Rank
Emeren currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Solar Releases
Canadian Solar Inc. (CSIQ - Free Report) reported a fourth-quarter 2023 loss of 2 cents per share, which came in much narrower than the Zacks Consensus Estimate of a loss of 13 cents. The bottom line deteriorated from the year-ago quarter’s reported profit of $1.11.
This solar cell manufacturer’s total fourth-quarter 2023 revenues of $1.72 billion beat the Zacks Consensus Estimate of $1.65 billion by 3.2%. The top line, however, decreased 13.7% from $1.97 billion reported in the fourth quarter of 2022.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported a fourth-quarter 2023 adjusted loss of 92 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.47. The bottom line deteriorated from the prior-year quarter’s reported profit of $2.86.
The company’s quarterly revenues of $316 million missed the Zacks Consensus Estimate of $320 million by 1.2%. The top line also declined 64.5% from the year-ago quarter’s figure of $890.7 million.
Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2023 adjusted earnings of 54 cents per share, down 64.2% from $1.51 reported in the prior-year quarter. The bottom line was on par with the Zacks Consensus Estimate.
Enphase Energy’s fourth-quarter revenues of $302.6 million missed the Zacks Consensus Estimate of $327 million by 7.5%. The top line also declined 58.2% from the prior-year quarter’s reported figure of $724.7 million.